Materials Surge Lifts Canadian Benchmark Index Higher

(RTTNews) - The Canadian benchmark S&P/TSX Composite Index remains firmly placed in positive territory Wednesday morning, supported by gains in materials, financials, consumer discretionary and healthcare sectors.

Despite persisting concerns about geopolitical tensions and inflation, the mood in the market is fairly positive this morning after the Bank of India decided to hold interest rates unchanged. A rebound by precious metals is aiding materials stocks.

The S&P/TSX Composite Index, which climbed to 36,116.82 earlier, was up 99.67 points or 0.28% at 35,925.40 a little while ago.

As widely expected, the Canadian central bank left its interest rates unchanged. The overnight rate now stays at 2.25%, the Bank rate remains at 2.5% and the deposit rate is held steady at 2.2%.

The central bank said recent data has reaffirmed the Governing Council's view of a broadening recovery in Canada's economy and noted that uncertainty is high and new U.S. tariffs and threats of further action pose risks to the sustainability of the recovery.

The central bank said its Governing Council will assess the sustainability of the economic rebound and the outlook for inflation and is prepared to adjust monetary policy as needed. The bank's next scheduled date for announcing the overnight rate target is October 28, 2026.

The Materials Capped Index is up 2.35%. Abrasilver Resources, Americas Gold & Silver, Silvercorp Metals, Vizsla Silver Corp., Discovery Mining, Avino Silver & Gold Mines, Endeavour Silver Corp., G Mining Ventures, Lundin Gold, Aya Gold & Silver, Torex Gold Resources, Iamgold Corp., First Majestic Silver Corp. and Perpetua Resources are up 4%-6.5%.

In the financials sector, Sprott Inc., EQB, Fairfax Financial Holdings, Bank of Montreal, Power Corporation of Canada, Great-West Lifeco, Brookfield Asset Management, Manulife Financial and Intact Financial Corporation are up 1.5%-2.7%.

Consumer discretionary stocks Brp Inc., Gildan Activewear, Linamar Corp., Magna International, Restuarant Brands International and Canadian Tire Corporation are up 1.8%-3.5%.

Bombardier Inc. shares are up 2.7% after the company announced that it has agreed to acquire the assets of Mitsubishi Heavy Industries Canada Aerospace, Inc. located in Mississauga, Ontario. The financial details of the transaction have not been divulged.

Healthcare stocks Bausch Health Companies, Curaleaf Holdings, Sienna Senior Living and Chartwell Retirement Residence are up with sharp to moderate gains.

Energy stocks are turning in a mixed performance and so do stocks from consumer staples, real estate and communications sectors.

Methanex Corporation is up by about 0.6%. The company announced that it has inked a deal to sell substantially all of its New Zealand natural gas contractual entitlements commencing in the first quarter of 2027 and continuing through the end of the decade.